it's mostly this is a man who explains the news of the world phone hacking scandal has been found dead at his home with the revelations of resignations keep coming place on tuesday evening figures from the murdoch media empire and the police will be grilled by british m.p.'s. europe's largest economy looks east for new opportunities in that image bed of an anglo-american told business in germany the contrary is north korea's biggest trading partner in europe as the kings of public

capitalize on the partnership. and getting to gaza see remains mission impossible the second attempt in as many years to deliver aid as holds it is ready to come on the vessel was boarded internationally which isn't is now being taken to court stalls. emacs and stacey are back this time on robbing the financial fairytale which some economic heavyweights appear to be living in. max kaiser this is the kaiser report america's going down the drain well let's get all the details of stacy herbert well max that's what you would think if you listen to moody now my first headline is actually

a tweet from eric schatz or from bloomberg ron paul tells me triple a reading probably not worth saving moody's part of political theater yes well it's interesting isn't it because movies they've run out of foreign countries to destroy their corrupt ratings and now they're set their targets on the united states so this is exactly what was predicted by marxism and the capitalist will sell themselves the news to hang themselves well that all of our except i don't think you could call these people capitalist but i'm also noting the word theater and you often see that in the terms of war the war theater. and i think this is part of what moody's is the rating agencies are part of the banking occupation globally they don't recognize any nation well they are going to downgrade they've already put them on notice people are saying is that part of the theater of the debt ceiling debate that's going on regardless of what's going on

with the debt ceiling the american aaa rating for its bonds will be cut now i have suggested that countries like greece that are being attacked by moody's should set up their own rating agency and return the favor by downgrading american debt first and thus reap the benefit of this but for some reason george pappa various is financially illiterate and has no idea how to fight a financial war let's move back to the economic war theater and. ron paul speaking of political theater this is a video and it's ron paul asking ben bernanke in congress interrogating him very quickly if you could answer another question because i'm curious about this you know the price of gold today is fifteen hundred eighty dollars the dollar euro these last three years was neither you know almost fifty percent when you wake up in the morning you care about the price of gold but the price of gold but i think it reflects a lot of things and it reflects global uncertainties i think people are the reason

people hold gold is a protection against what we call tail risk really really bad outcomes and to the extent that the last few years of me people move worried about potential of a major crisis then they have gold as a protection. money no but this is a fantastic video clip because it shows you really now forty years after the closure of the gold window it took forty years for wonks and policymakers and fed chairman to completely this is associate money from gold in their minds and this is the root of the global problem is that they think that their academic theories can solve problems of the global economy and we heard this from christie look the guard recently her response to the european crisis is that simply create more debt this is a typical response of a bernanke you're an academic who their job is to come up with formulas how to

increase the debt load and they have lost touch with the reality of gold and what's going to happen is that the market itself will impose the reality by crashing the fee at currencies more than they've already been crashed this is why we've got our price target of gold now set to ten thousand dollars well the other thing is that. there are many reasons why people investors and nations around the world have been buying gold and it was a tail risk as bernanke is one of the many reasons he is the primary reason i would say people are buying gold but he's distracting you with this one element of tail risk and i want to move on to the next to show you the political theater and how it works with the propaganda that we see going on in this financial war talks inflation change could cut social security you know obama and

the republican party are hashing it out you know they've been hashing out how to fight this deficit one of the options includes a new inflation measure for social security that could produce savings close to two hundred billion dollars through a combination of reduced benefits and higher taxes the proposal would mean adopting a new inflation measure which would allow policymakers to gradually cut benefits and increase taxes in a way that might not be readily apparent to most americans it's called the chained consumer price index well this is exactly what i'm talking about another words when the formula doesn't support their misconception about why the economy is failing they change the formula instead of simply looking at the evidence staring them straight in place now by adjusting the c.p.i. again and they do this every few years for now thank you will look at the revised c.p.i. and say well there's no inflation and so he'll keep interest rates near zero which

of course means the speculators can borrow at rates near zero and the thing that they buy with the money that they're borrowing at near zero thanks to bernanke is food and energy good people on the street are seeing their food and energy prices skyrocket and they complain to the government that we can't eat anymore and the government says well we don't include food and energy in our analysis of price is similar prices we took that out. the consumer price index we only look at this new version of the c.p.i. you must be wrong the fact that you're starving and can't afford gas is incorrect because our our revised c.p.i. model tells us that interest rates need to be near zero as a favor to the speculators and it goes on and on and on but this goes back to the importance of why gold and silver are skyrocketing we've had many trolls many trolls out there saying that don't buy gold and silver those are those are in a bubble those are crazy when the crazy guy is this guy ben bernanke and obama and all of the politicians that america is part of the political theater they pretend

there's a red team in a blue team they talk about cutting your taxes while at the same time they're noting here that lower middle income families will be hit the worst and why they're hitting you is because they said that it will not be readily apparent to most americans as long as there are guys cutting taxes they think they're not being taxed this well they are aware of the fact that they're becoming bankrupt but they have no voice they have no vote because only the plutocracy one dollar one vote operates in the united states anymore and plutocracy which is tied into the speculative class they want interest rates to be near zero and ben bernanke is in their pocket he works for them he keeps interest rates near zero saying there's no inflation even though it's gret it's biting him in in the face obviously there is a violation but he is a robot programmed to misinterpret the data but let's move on here max shoplifting is a good for the economy this fits in with the whole propaganda this is from c n b c

and they're looking at the latest report from the national retail federation that showed that inventory loss due to shoplifting increased by three point six billion dollars nearly eleven percent last year c n b c says some of qana me watchers say that that's actually a good sign for the economy but there's an increase in shoplifting because it shows that people are willing to take a risk that they might be locked up their chosen initiative. but also because again the majority the growth problems from the banking sector and the banking sector is deregulated and they are engaged in wholesale thieving and larceny so if somebody goes into a seven eleven store and steals they say that guy could work for j.p. morgan thank god i could work for goldman sachs he knows how to steal money he could be useful to us some day but this is how they just reclassify him decide that's not what you think it is your eyes are lying to you so ben bernanke you can say oh all those people buying gold that's just they're afraid of tail risk

stealing also puts more people in prison and there's a huge prison industrial complex and private prison business so that's good for the economy too yes and remember george bush tried to re classify as manufacturing all the hamburger flippers in america so they try to paint their economy as looking like the biggest economy in the world and it's becoming more and more obvious that that's a big fraud if at all it all comes back to you know you can make a comparison to roman coin clipping where they clip the coins which created this massive inflation of the collapse of the roman empire in america the coin flipping columns in these new ways they statistically recalculate the statistics to make it look like there's no inflation or they they reclassify hamburger flippers from a service job to a manufacturing job to make it look like there is growth where there is no growth and just like the roman empire that was over expanded too many military occupations there will collapse of the same reason this is not new it happens throughout

history so let's look at how the top trickles down to the bottom here and how great the economy in america is obviously do it as copper soars thieves extract a price when thieves ransacked eight air conditioners in an apartment complex in the city of mobile alabama the culprits made off with eight hundred dollars worth of scrap metal and left residents with a thirty eight thousand dollars worth. damages so that's exactly how ben bernanke operates if not you bails out the bankers for say they've stolen eight hundred billion or eighty trillion and it cost the economy many times that to replace and repair the damaged part and that way justifies it as it goes on for a congress and he sees i don't see inflation so i keep interest rates cheap which makes commodity prices skyrocket and congress will say well we see skyrocketing commodity prices we thought we seeing fleishman but because he uses the revised c.p.i. number which excludes food and energy he doesn't see inflation so that therefore

that it's just perpetuates itself the is he is blind he's inflation blind on purpose because it helps the speculators there are new laws being introduced all over america because of the rash of theft so in for example they mentioned south carolina which has a new law prohibiting recyclers from paying cash for copper so the sheriff said there we wanted to take the incentive to steal out of the equation which could be a great example for the american population at large to close the fed window to enable these banking banks thursday's crime lords from swapping their toxic assets for you know treasury paper right but they point to the hedge fund managers of the money managers in the banks are sort of stolen all the money as being their heroes as being the heroic superman of the of the economy based on their super larceny so there's no there's no cultural shift away from praising the crooks on wall

street there's no heroes in american society they only praise the crook and so these crime lords look around them in a stupid disaster in front of them and then they rename everything to make it look good and this is my final headline here max u.k. needs rich to get richer o.t.r. fines o.t.r. is the office for budget responsibility and they say that although growing levels of. income inequality have been identified by economists as one of the causes of the recent crisis there are now us this shows that government is more dependent than ever for the rich for tax revenues so therefore they should encourage everybody to get richer at the expense of the poor in the middle class but again statistically they're using numbers to legitimize an argument that promotes serfdom and neo feudalism obviously they're going to be paying more in taxes as a percentage as more of the bottom ninety percent end up in prison. clearly if you

have a serf population then the taxes being paid will be concentrated in those people who are operating the prisons so i have this headline appeared four hundred years ago in the neo in the feudalism is that of europe somewhere it would make more sense for to see it here in the year two thousand and eleven seems completely out of place but it also goes very well with what bernanke he is saying about inflation not that there's no inflation is in fact this will result the rich will get richer the rich do get richer with inflation because they hold all the assets and they're protected whereas the poor working for pennies on the dollar you see across the world they always end up decimated while the joke's on the rest however because all their wealth is tied into paper currencies on the us dollar less than one percent of all the invested assets in the world are held across us bubbles and the joke is on them because as precious metals continue to skyrocket they're the ones wearing

the barrels living in the poor houses while we lord over them say sarah thanks so much for being on the kaiser report thank you and they are right there don't go away much more coming your way. in a little. discovery. with the one. test yourself and become free. nature can give you. a moment of welcome back to the kaiser report time now to go to london and speak with a marathoner key co-founder of bit coin consultancy dot com near welcome to the kaiser

report very good to be on the show tonight x. and i'm not saying that you'll show it was one of the for us to start reporting on a point you know she gave a very very informants is coverage of it compared to the sensationalist news off to well try to do here is to look at this issue because it is a very interesting issue a year a consultant a bit coin consultant and as you point out there's been some. quite a spread and now this story is being reported and it invites quite a passionate response people either love it or hate it the idea of bitcoin so walk us through it what is bitcoin why does it ignites of passion big when i should the is the first decentralized currency online that is. the thing is because nobody owns a network there is no concept of control nobody can tell people how the queen is used and so. there are people that you speak. for services which.

you know legal that seems to generate passion response from people who you see who just look at that point at first glance and also not simply assume that because some people are using it for bad things and therefore the constant only used totally for bad things let me pen in their perspective america give some background little bit background so in other words let's start from the beginning in terms of bitcoin it's a good little currency it's a decent realized currency in that there is no central authority like a central bank and it's also an encrypted currency which gives a remarkable benefits the ones that you'd expect and want from a currency if you're looking to do business outside of surveillance of let's say corrupt federal employees or governments but on the same token obviously just like cash it can be used for nefarious and those well but let me talk about

a word that is used. two words actually one is called disruptive and another d word this intermediation so in terms of destructive dis intermediation we've seen p.d.p. software development in the projects like apache software that now runs the bulk of all the major internet applications we've seen peter p music file swapping which is totally transformed the music industry gave birth to a new whole new generation of music and technology some argue there's pros and cons there but this is the applied the p.t.p. idea applied to money applied to currency and so this is what's difficult because we just heard ben bernanke being asked by paul ron paul if gold was money he said no but he believes in figure out money which many argue is not money so were his big currency fall into that spread is it more like gold or is it more like

a dollar a three hour currency if you look around you says a lot of people actually saying a lot of things about what big point is a big point isn't it if your actions we've actually spoken on you know the big consultancy the various lawyers and they actually say the they don't know what it's going to be classified us and that's intelligent and since a give. it's kind of looking now that it might be classed as a commodity kind of like what's happening with gold in a gold isn't actually we have all the gold businesses in the u.k. they don't actually regulated now and then we go back to what are you saying before about the pits appear aspects the this is like part of a larger movement has been going on for many years if you look at the software industry they came out with proprietary software which is treating software as a products there's been a movement of people on the internet shall we say building their own economy in their own structures and ways of governing and it's one of these products was linux

which as far as i'm concerned is a rock star in the computing world you can find it on mobile phones is embedded devices it's everywhere. and there's me and ever since then there's been considerably more and more things coming out of this movement so for instance wiki leaks is one thing and bit torrent as you were saying is another. and basically these are very subversive technologies which is taking the power structures and dispersing them or among people in other words if you use the word some first serve but in a good way i would say in the same way that democracy is subversive in that it distributes power to a maximum number of people in society and let me ask you this about another social networking what the cost also networking phenomenon we look at facebook facebook of course is a place that that leverage is on this p.v.p.

aspect of the world and yet almost ninety nine point nine percent of all the profits are going to or all the profits are going to end up in the pockets of a few bankers and the executives at facebook there is no real distribution of that predominant of social networking to the people who actually built the value or is it going. it's the opposite is that the people who build the value actually get to keep their value would you agree with the finger if facebook is is it's not really any kind of inner pairing technology when you go on facebook you know trusting facebook you put your data into facebook which they don't necessarily use you know and it's certainly good fasher a big coin if you think about it is actually you are a willing participant in this network with the current financial system if i don't want to use the banks or i don't want to use for my money interfere money i have no

choice if if i want to do business in the world via something like big coin the whole concept is is that now i have my money a night computer and i can choose who i want to trust. that's a really powerful thing and you mentioned facebook wall facebook is a private company big point is not owned by anybody the infrastructure is owned by a participant since i'm not writing right ok and then with the actual workings of it going there is for those who are not familiar there's two sides to it they're the people who are purchasing the coins to be used in this economy and then they're the people who actually create the coins and the people who purchase the coins they essentially it's like any other currency transaction they put in their currency and they get bitcoins which they can then use for transactions on the creation side of the coin however this is something that is beyond the scope of this program to explain what the point is that many argue that

it is purely digital and it could disappear at heartbeat and we had a crash recently and one of the exchanges of bitcoin not had nothing to do with because it itself but on one of the recent exchanges out robust is a good point this exchange was done private exchange would mt gox you have the money which is big coin which is separate from the exchanges so what happened is one exchange is very negligible and they were sincere and someone stole a lot of big coins and suddenly flooded the market with them driving the price on that's exchange fountains there are now all group runs the u.k. exchanges bric coins and during that crash we saw relatively very little change in the price of. g.d.p. the thing about the exchanges is anybody can sap an exchange you need to open

exchange is a bank account you know that's when the really cool advantages of big point is it's truly international there is no concept of borders in this currency juicer the nature of it being complete in these times. allies there's a lot of competition in this network and this competition actually drives the overhead of the current scene right down to what it is that's a hotshoe powered network rise is the overhead drops due to the competition from the people so one of the things that we've seen is that this company this power of the network has been exponentially rising it's more powerful than any six supercomputer in the world right now so finally we've got about a minute left i just want to return to something you said earlier which i think is very important but i asked you to compare it there's a closer to a figure out dollar or gold an era saying that well you know we're swinging toward this idea that it's more like gold and this i think is constructed it is actually very difficult for people to wrap their minds around because it sounds like the

antithesis of gold however it is like gold in that it's anonymous it's a limited supply it's highly valued and versus and it's decentralized and it has really gold like property is which can you expand on that just a little bit more before we have to go big koreans is basically the analogy is like digital cash once you spend them the transaction is irreversible so you get another argument for. why not to use pay pal is. there's a cost six count where you send pay pal dollars and then you're a few the payment of a few cents here and ask you to charge back and that makes it very expensive for vendors on the internet to use paypal if they coins there is no concept of charge backs that's another reason why you don't have to put your prices higher because of this face like one of the things is using big coins a month and as a micro transaction system and it's more practical to use pay pal if you have to

charge. slightly higher on your goods to cover this pain especially if you're selling goods very little especially like one counts and. which to day everybody can make them the actual price of these very large right then this is why digital content producers on the web obviously as we go toward micro payments are looking at it coin and this is further distant for mediation away from the entrenched content providers who are also wed to the outdated copy right model so this is really a two fisted punch in the face to the entrenched oligarch only in the finance and content creation industry i take it then also if you compare to the woods or facebook credits the comparison would be that on facebook the number of credit sort of think of dollars that can be created is infinite whereas on of bitcoin it's finite. so to destroy copyright you know see people on the internet sharing

creative logs remakes and movies what's creating new stuff it's a generator of culture and in that same way they claim could be false oath as a way that it could be used. as a bottom against the hoops and the right well that's all the time for we have we're going to check back with you there that's ok a few months time to see how this market is expanding its probably the most explosive growing currency market in the world it's the kissing cousin to gold and it's going to dominate this decade in terms of news stories about currencies a lot in my opinion mirror thanks so much for being on the kaiser report thank you max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i want to thank my guest amir talkie if you honestly mean email please do so at kaiser reported or t.v. that are you in so much time this is nice guys are saying bye oh oh.

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